Hello,
I am currently using Turbotax Premier pc version.
My wife and I contributed $6,000 in Feb. 2020 to our Roth IRA for each account. After we realized that we were not eligible for Roth IRA, we did recharacterize (to tradition IRA) and converted back to (Roth IRA).
We did fill out 8606 form in 2020 tax report in year 2021.
We did receive 1099-R form in 2022 and they are marked with 2021. One with code "R" and the other with code "2".
When we tried to file 2021 tax report, under "wage & income" tab, I filled out "Explain Your Recharacterization" page. I explained the original contribution date, the recharacterization date, reason..etc.
Later when I worked on "Deduction and Credit" part, I checked "Roth IRA" on transitional IRA and Roth IRA" page. Since we also contributed $6,000 in Jan. 2021, we checked "Roth IRA" (and 0 in traditional IRA in Dec. 31, 2021). We entered $6,000 as Roth IRA contribution and we also entered $6,000 as "amount switched from a Roth to a Traditional IRA" since we need to recharacterize.
It also asked us to fill out the "Explain Your Recharacterization" so we explained the recharacterization which we did it in 2022 (for 2021 tax report).
Later I happened to go back to "Wage and Income" section, and I realized that all the descriptions that I made were all changed with the description I made under "Deductions and Credits" section.
In other words, I thought I need to explain "2021 recharacterization - for 2020 Roth IRA contribution" under "Wage and Income" section and need to describe "2022 recharacterization - for 2021 Roth IRA contribution".
However, one of descriptions in "Explain your recharacterization" overwrites the other.
Why there is only one 8606 form (or two 8606 with my wife) in my case? I thought there should be two (or four with my wife's)?
Thank you for your help.
The 2020 recharacterization should have been on the 2020 return - even though the form was issued for 2021 (your broker didn't know until 2021). If you did the first recharacterization for 2020 and didn't enter it on your 2020 return then you should amend the return to show that change. Only the 2021 amounts (done for tax year 2021) should be entered on the 2021 return.